Royal London dismisses fears of AE exodus after April contribution hike

More generous tax system

Hannah Godfrey
clock • 2 min read

The approaching increase in automatic enrolment (AE) contributions this April is "highly unlikely" to lead to large numbers of people giving up saving into a workplace pension, Royal London has said.

The pension provider's new policy paper What will be the impact of the April 2019 step-up in AE contribution rates? concluded that, despite the upcoming hike in employee contribution rates, the impact on pension scheme membership should be minimal. Royal London said the increased contributions would be partly or fully offset for most people by pay rises and a more generous income tax system, which will see an above-inflation increase in the personal allowance for income tax and an above-inflation increase in the national living wage. From 6 April 2019, the employer minimum contributio...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Retirement

Advisers warn market volatility will threaten retirement plans

Advisers warn market volatility will threaten retirement plans

More than half expect clients to postpone or change plans

Isabel Baxter
clock 26 March 2024 • 2 min read
Perfect timing: How to advise clients on the right time to retire

Perfect timing: How to advise clients on the right time to retire

Striking a balance between health, wealth and personality

Richard Hulbert
clock 05 February 2024 • 4 min read
Baillie Gifford: Enjoying later life without an income from work

Baillie Gifford: Enjoying later life without an income from work

The latest from PA’ Digital Working Lunch webinar series

Professional Adviser
clock 12 December 2023 • 2 min read